So I’m about to get my first red hero (Donald) and wondered, what do red skill chips do. Do they unlock the red skill or is it something else (level up the skill).
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Both 
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You have to do hard city watch runs to get epic keys.
In epic city watch runs you can only use red heroes, so wait until you have 7 to 10 red heroes before trying an epic run.
Each section you clear gives some red chips which you can use to unlock red skills
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In addition to what has been said, you need hero chips earned from elite campaigns too in order to use red skull chips.
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You need 125 skill chips, 25 hero chips, and 10M gold to unlock a Red Skill. You’ll then need 5 hero chips, and ten skill chips to upgrade red skills, plus a bunch of gold. 250K to 500K and it gets bigger overtime.
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hey does someone know how to use the skill chip on the game.
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This, in a few words.